The Nigerian National Petroleum Company (NNPC) Limited on Saturday announced the acquisition of OVH Energy Marketing (OVH), owner and operator of the Oando branded retail service stations, and will be merged with NNPC Retail Limited (NRL).
This strategic move aims to create the leading downstream energy company in Nigeria and West Africa, driven by operational efficiency, best-in-class management, and physical infrastructure while offering premium petroleum products and related services to customers.
Through this acquisition, NNPC Retail Limited will build on the existing success of OVH and operate model service outlets leveraging OVH’s extensive asset base and commercial capabilities.
Speaking at the ceremony, the Board Chairman of Nigerian National Petroleum Company (NNPC) Limited, Senator Margery Okadigbo, said the acquisition, under an Accelerated Network Expansion (ANEX) Initiative, is aimed at strengthening the nation’s downstream business portfolio, enhancing profitability and guaranteeing national energy security.
Among the downstream assets acquired by OVH are a reception jetty (ASPM) with a monthly capacity of 240,000MT, eight LPG plants, three lube blending plants, three aviation depots, and twelve warehouses.
“The acquisition will bring over 380 additional filling stations under the NNPC Retail brand in Nigeria and Togo, on our journey to attaining 1,500 stations. We will be the largest petroleum products retail network in Africa, “Okadigbo said.
In his remarks, the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, Mal Mele Kyari, said that the acquisition has further strengthened the NNPC Limited as a vehicle for ensuring the company delivers on the energy transition goals of the country.
The transaction also positions NNPC Retail Limited as the fastest growing commercial energy company in its pursuit to guarantee energy security for Nigeria’s growing population and significantly more growth opportunities for the business.
“Our acquisition of OVH, brings more NNPC branded fuel stations under the NNPC Retail Limited umbrella, providing wider access for our customers, an enriched supply chain, and product availability across our different locations”
“Our goal as NNPC Limited is to become a catalyst for massive improvement within the downstream oil and gas industry therefore, access to the extensive asset base of OVH is our audacious step towards attaining this goal.
“With this development, we are poised to becoming the largest petroleum products Retail network on the African continent, ” Kyari said.
Speaking also at the ceremony, the CEO of OVH Energy Marketing (OVHEM) Limited, Huub Stokman, said that through its Oando retail brand, OVH Energy has enriched Nigeria’s downstream sector and established an unparalleled supply footprint, distributing over 1 billion litres of refined petroleum products annually.
“This acquisition by NNPC Limited comes at a critical time in the Nigerian energy sector given the overhaul of the petroleum laws (with the recent enactment of the PIA), the continuing increased demand for petroleum products, and particularly the deliberate efforts to increase and improve the supply and consumption of natural gas in support of our energy transition goals,” says Huub Stokman, CEO OVH.
“We have always focused on a value-driven approach, prioritizing the quality of products and services offered to our customers.
This acquisition enables the combined strengths of both entities, to innovate our offerings and infrastructure, necessary to transform the downstream energy sector in Nigeria and West Africa. It is an exciting time for us all, as we continue to focus on technological enhancement for our customers, staff, and other stakeholders” he added.
OVH Energy Oando branded retail service stations will be rebranded into the NNPC brand and full integration is expected by the end of 2023.
The leadership of the merged entity shares a common purpose and is focused on value creation with the strengths of OVH’s operational efficiency and NNPC’s brand.
In addition, and to support the combined NNPC Retail Limited operations, NNPC Limited has acquired Apapa SPM Limited (an affiliate of OVH Energy) that owns and manages West Africa’s first privately owned midstream jetty, known as the Lagos Midstream Jetty.
OVH Energy Marketing (OVHEM) Limited is a licensee of the Oando retail brand and is involved in the marketing and distribution of refined petroleum products for retail, commercial, and industrial purposes.
